Abstract:&nbspWe assess the competitive impact that single-market banks and
thrift institutions have on multi-market banks (and vice-versa) in 1,884 non-
MSA markets. We estimate a model of equilibrium market structure which
endogenizes entry for three types: multi-market banks, single-market banks, and
thrift institutions. Observed market structures and the solution to an entry-type
game identify the parameters of a latent (unobserved) profit function. We find
significant evidence of product differentiation-- particularly in the case of
thrifts. Furthermore, product differentiation appears to depend upon differences
in market geography.